Contract Creation and Management Simulation

Running Head: Contract Creation and Management SimulationContract Creation and Management SimulationLearning Team A:Rita Ben-CherquiJohn MartoranaBusiness LawUniversity of PhoenixMarch 10, 2009The SimulationIn the "Contract Creation and Management" simulation between Span Systems and Citizen-Schwarz AG, Team A was given the opportunity of reviewing the case between the two aforementioned companies and was able to "develop a negotiating position, argue performance of the contract, and amend an existing contract to prevent a potentially disruptive business dispute" (Legal Environment of Business). Based on this simulation, Team A has created a memo that addresses the legal risks that have arisen from these two companies working together, as well alternatives that may be used to minimize the legal risks and conflicts that are detrimental to the union.

The memo is intended to identify, reflect upon and specify measures that must be taken by one or both companies to decrease risks and increase opportunities. Team A will discuss the following legal risks that were presented in the simulation: Breach of Contract, Amending the Contract and Ambiguity of Contracts. After having conducted the simulation and reviewing the company's options, the memo will serve as a building tool for each company's managers to realize what steps need to be taken to avoid larger, more costly issues between Span Systems and Citizen-Schwarz AG.

Breach of ContractThere are a couple of items that Span Systems is able to dispute Citizen-Schwarz for under Breach of Contract. Citizen-Schwarz first breached the contract under the communication and reporting any changes of project management structure. These occurrences are the main reason for the delay of Span Systems' product delivery and in review of these deliverables, this has not happened as planned which led to the slip schedules.

The next item that led to breach of contract was under the requirements change. Span Systems feels the...